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INTERNSHIP REPORT ONPEL (Pak Elektron Limited), Lahore
ByMOHSIN ALI
S/2005-601M.B.E
December 2007
Department of Business EducationInstitute of Education & Research
University of the PunjabLahore – Pakistan
PREFACE
Competition in practical field is growing due to no. of Govt. and private
institutions making students who have their worth. So, situation is getting challenging
for students of Business Education.
To avoid this discrepancy the MBE students it seems compulsory to visit
various business organizations for two month practical training. This training makes
them familiar with the practical system of management, which prevails in various
business organizations. So in this connection I had the opportunity to perform
internship at PEL (Pak Elektron Limited), Lahore Pakistan.
The internship program is to broaden the vision of practical experiences with
theoretical knowledge as it increases one’s capabilities to handle problems at various
stages and ability of decision.
I tried my best to collect the valuable information and its relevant fact.
Mohsin Ali
i
DEDICATION
Our loving, caring and great teachers and parents, whose prayers have
been a force behind all our inspiration, whose guidance, motivation and
support has made us able to be successful in all the fields of life.
ii
ACKNOWLEDGMENT
‘In the name of Allah, the most Gracious, the most merciful’
First, I would like to thanks Almighty Allah who gave me strength to
complete challenging tasks & His blessings that He provided me confidence, guidance
& strength to complete this report. The journey has not finished yet and I pray to Him
to show me the straight path & help me more in future as I am nothing without His
blessings.
Writing an internship report appeared to be a great experience to me. It added
a lot to my knowledge. Completion of internship report is not an easy task. It requires
continuous hard work. Completion of this report would have not been possible with
out the support of all employees of PEL to whom I interacted. My respected teachers,
my friends and my well wishers played their important role as well. I would
especially like to thank the whole working staff of the Marketing (AD) department
that gave me valuable insights into this project.
Very special thank to all my dear teachers that build my personality and
enable me to do some creative work be a successful person in practical life.
My gratitude will always remain due to the University of the Punjab,
especially Department of Business Education, Institute of Education & Research for
expanding my knowledge and experience. Both these prestigious institutions will
have a lasting impact on my life.
May Allah Bestow His Blessings on All of Us
iii
APPROVED
Accepted by the Department of Business Education, Institute of Education &
Research, University of the Punjab in partial fulfillment of the MBE degree.
Chairman:______________________
iv
TABLE OF CONTENTS
PREFACE.....................................................................................................................I
DEDICATION.............................................................................................................II
ACKNOWLEDGMENT...........................................................................................III
APPROVED...............................................................................................................IV
CHAIRMAN:______________________.................................................................IV
CHAPTER I..................................................................................................................1
INTRODUCTION OF PEL..............................................................................................1
CHAPTER II................................................................................................................4
PEL GROUP HISTORY.................................................................................................4VISION........................................................................................................................5MISSION STATEMENT.................................................................................................5OBJECTIVES................................................................................................................5CORPORATE PROFILE...........................................................................................6PEL PROFILE...........................................................................................................8ORGANIZATIONAL STRUCTURE:.................................................................................9SPAN OF CONTROL..............................................................................................11EXECUTIVE LEVEL....................................................................................................11WORKERS LEVEL......................................................................................................11DIVISION OF LABOUR........................................................................................12DEPARTMENTALIZATION..........................................................................................12POWER DIVISION......................................................................................................13TRANSFORMERS........................................................................................................13SWITCH GEARS.........................................................................................................14ENERGY METERS......................................................................................................14APPLIANCE DIVISION................................................................................................15PRODUCT PORTFOLIO........................................................................................15GROSS SALE.............................................................................................................17MARKET SHARE........................................................................................................17
FUNCTIONS OF SPECIALIZED DEPARTMENTS............................................18
MARKETING..............................................................................................................18HIERARCHY OF MARKETING (AD)...........................................................................19TRANSSHIPMENT.......................................................................................................19DEALERS...................................................................................................................21PLACEMENT OF ORDER BY DEALER.........................................................................22CUSTOMER SERVICE DEPARTMENT (CSD)...............................................................22CREDIT CONTROL DEPARTMENT (D&C)..................................................................23DISPATCH..................................................................................................................23CONSUMER MARKETING DEPARTMENT (CMD).......................................................23HUMAN RESOURCE DEPARTMENT............................................................................24FINANCE DEPARTMENT............................................................................................26
Income Tax /Sales Tex Recording........................................................................26Employees Salary Recording...............................................................................27
v
ADMINISTRATION (IR & A)......................................................................................27PROCUREMENT..........................................................................................................28
Local Procurement...............................................................................................28Foreign Procurement...........................................................................................28
INTERNAL AUDIT......................................................................................................29INFORMATION TECHNOLOGY DEPARTMENT.............................................................29PRODUCTION.............................................................................................................30ACCOUNTS DEPARTMENT.........................................................................................30
SWOT ANALYSIS.....................................................................................................32
STRENGTHS...............................................................................................................32Strong Brand Image.............................................................................................32Strong Dealer Network.........................................................................................33Strong Quality, Sale and Service..........................................................................33Market leader in WRAC (Window Room Air Conditioner)..................................33Number 2 in Refrigerators in Pakistan................................................................34Strong Grip in Home Appliance...........................................................................34Strong Management.............................................................................................34Distribution of Authority......................................................................................34Strong Research and Development Department..................................................35Free Customer Service.........................................................................................35Public Limited Company......................................................................................35
WEAKNESSES............................................................................................................36Lack of Advertisement..........................................................................................36System Variations.................................................................................................36Lack of Product Range.........................................................................................37Less Utilization of Capacity.................................................................................37Financial Problems..............................................................................................37
OPPORTUNITIES.........................................................................................................38Exploration of Market in Pakistan.......................................................................38Increase in Product Range...................................................................................38Export Opportunity..............................................................................................39Increase in Production Line.................................................................................39
THREATS...................................................................................................................39Strong Competition..............................................................................................40China’s Product...................................................................................................40Price war:.............................................................................................................41Slow Growth Rate in Pakistan.............................................................................41Instability of Government.....................................................................................41Tax Department....................................................................................................41World trade Organization....................................................................................42Investor’s:............................................................................................................42
PROBLEMS...............................................................................................................43
SUB PROBLEMS.........................................................................................................43
CHAPTER III.............................................................................................................44
INTERNSHIP ACTIVITIES............................................................................................44WORKING WITH MY MANAGER IN PEL....................................................................45
vi
APPLICATION OF KNOWLEDGE LEARNED IN MBE....................................................46NEW THINGS LEARNED:...........................................................................................47
CHAPTER IV.............................................................................................................48
SUMMARY.............................................................................................................48RECOMMENDATIONS FOR THE ORGANIZATION:........................................................50FOR MBE.................................................................................................................52FOR THE INSTITUTE (FOR THE NEXT INTERNEES).....................................................53CONCLUSION.............................................................................................................54Annexure..................................................................................................................55
vii
CHAPTER I
Introduction of PEL
Pak Electron Limited (PEL) is the well renowned company in home
appliances sector. It is the journey of years to reach this position. PEL was established
in 1956 with the technical collaboration of M/s AEG Germany with object of initially
producing transformers, switchgears and electric motors. AEG experts and PEL
personnel carried out the designing and production of these equipments jointly. It is
the oldest composite electrical equipment-manufacturing unit of Pakistan producing
power and consumer products.
The present range of power products includes Transformers upto 33KV
5MVA capacity, Switchgears upto 33KV, Cage Induction Motors upto 40HP, Single
Phase Energy Motors, Small Generators, Shunt Capacitor, Banks and Recloser etc.
In the year 1980 the company expanded into consumer products with the
introduction of Window Type Air Conditioners and today also manufactures Split Air
Conditioners, Refrigerators, Microwave ovens, Deep Freezers and Compressors etc.
PEL products right from the beginning have been of a high standard and the
name PEL is synonymous with QUALITY all over Pakistan. Since its inception, the
company has been acting as an institution working for the advancement and
development of engineering know how in Pakistan. The company has produced
1
hundreds of engineers, skilled workers and technicians through its apprenticeship
schemes and training programs.
In October 1978, the company was taken over by the SAIGOL GROUP,
which is one of the leading industrial groups in PAKISTAN, having diversified
business activities in the fields of:
Textile
Engineering
Banking & Finance
Fuel & Energy
Trading
Automobiles
SAIGOL GROUP OF COMPANIES
Textile
Kohinoor Industries Ltd. Kohinoor Nagar, Faisalabad
Azam Textile Mills Ltd. 06-Egerton Road, Lahore
Saritow Spinning Mills Ltd. 06-Egerton Road, Lahore
Fuel & Energy
Kohinoor Power Co. Ltd. Kohinoor Nagar, Faisalabad
Kohinoor Energy Ltd. 06-Egerton Road, Lahore
Engineering
Pak Elektron Ltd. 14km, Ferozepur Road, Lahore
PEL Appliances Ltd. Gadoon Amazai, Sawabi
PEL Daewoo Electronics Hattar, District, Haripur
Banking & Finance
Union Bank Ltd. 06-Egerton Road, Lahore
Union Leasing Ltd. 07-Egerton Road, Lahore
2
Trading
Saritow Pakistan Ltd. 06-Egerton Road, Lahore
Saigol Computer Ltd. 162-Shadman Colony, Lahore
Automobiles
Kohinoor Motor Works Ltd. 07-Egerton Road, Lahore
3
CHAPTER II
PEL Group History
Pak Elektron was setup in 1956 as a Public Limited Company with the object
of initially producing transformers, switchgears, and electric motors. AEG experts and
PEL personnel carried out the designing and production of this equipment jointly.
After the conclusion of joint venture agreement with AEG Saigol Group
acquired the PEL COMPANY in October 1978. The company floated its shares to the
general public and was listed on Karachi Stock Exchange (KSE) and Lahore Stock
Exchange (LSE).
In 1980, Appliances Division was established and in 1981 its starts the
production of Window Type Air Conditioners with the technical collaboration of
General Corporation of Japan. This air conditioner was well received in the market for
its quality. Subsequently in 1987 the production of Refrigerators and Deep Freezers
was started.
In 1993 the company has started the assembly of Compressors for
Refrigerators and Deep Freezers under technical collaboration with Messrs. NECCHI
COMPRESSORI of Italy.
It was in early 70s that PEL became known in overseas markets due to its
quality. The company started its export to countries like Saudi Arabia, Abu Dhabi,
Qatar etc. Later on PEL supplied electrical equipments to various other countries in
the Middle East, Far East and Africa with great success.
4
Vision
To excel in providing engineering goods and services through continuous
improvement.
Mission Statement
To provide quality products & services to the complete satisfaction of our
customers and maximize returns for all stakeholders through optimal use of resources
To focus on personal development of our employees to meet future challenges
To promote good governance, corporate values and a safe working
environment with a strong sense of social responsibility
Objectives
The Objectives and Missions for which the company is established are as
following:
The purchase and acquire from Messrs. Malik Brother Limited on
Ferozepur Road (Near Walton) in the district of Lahore under the
name of Pak Elektron and all plant, machinery, goodwill and all the
subsisting contracts in respect there of with right, privileges and
obligations relating to the sold properties and with a view there of to
enter into the agreement and to carry the same into effect with or
without modifications.
5
To carry on the business or business of manufacturing, selling,
installing, maintaining designing and dealing in all kinds of electrical
equipment.
To carryon any business whether manufacturing or otherwise which
maybe found convenient to undertake in connection with or in
addition to any of these objectives mentioned above.
To do all such things that are incidental or conductive for the
attainment of the above objectives or any of them.
To produce high quality and standard products.
To produce equipment to be used in numerous projects of national
importance.
To secure a high share / quota of WAPDA’s demand for power
products.
To produce skilled workers and technicians through its apprenticeship
schemes and training programmed for engineers and technicians.
CORPORATE PROFILE
Board of Directors
Mr. M. Naseem Saigol (Chairman / Chief Executive)
Mr. M. Azam Saigol
Mr. Shahid Sethi
Mr. Haroon Ahmad Khan (Managing Director)
Mr. Mohibullah Usmani
Mr. Muhammad Khaleeq Janjua
Mr. Javed Mahmood Dar
Mr. Nausherwan Adil
Mr. K.M.M. Shah
6
Company Secretary
Sheikh Muhammad Shakeel, ACA
Auditors
Manzoor Hussain Mir & Co.
Chartered Accountants
7
PEL PROFILE
Pak Elektron Limited (PEL) is the flag bearer of the Saigol Group of Companies.
The products manufactured by PEL have always been of high standard and the name
'PEL' is synonymous with QUALITY all over Pakistan. Since its inception, the
company has been working for the advancement and development of engineering
know-how in Pakistan. The company has produced hundreds of engineers, skilled
workers, and technicians through its apprenticeship schemes & training programs.
PEL has been continuously adding new products to its range. As a result, PEL has
registered a significant increase in its sales volume, during the last ten years.
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in
Pakistan. It was established in 1956 in technical collaboration with M/s AEG of
Germany. In October 1978, the Saigol Group of Companies bought the company.
Since its inception, the company has always been contributing towards the
advancement and development of the engineering sector in Pakistan by introducing a
range of quality home appliances and by producing hundreds of engineers, skilled
workers and technicians through its apprenticeship schemes and training programs.
8
Organizational Structure:
Mr. M. Naseem Saigol
Mr. M. Naseem Saigol is CEO / Chairman of The Saigol Group of Industries and
CEO of PEL. He actively participates in strategic management of the Company’s
affairs and overlooks policy making. He holds the office of Honorary Consulate of
Belgium and is also the Chairman of the Board of Directors of PEL. He holds a
degree in chemical engineering from USA.
Mr. Haroon A. Khan
Mr. Haroon A. Khan is Managing Director of PEL. He is responsible for managing all
the affairs of the Company. Previously (1998-2000) he worked as General Manager
Finance of the Company and Financial Controller with Saigols (Pvt.) Ltd. (1994-
1998). Prior to joining the Group he worked with another conglomerate for a period
of over four years. Mr. Khan is a Chartered Accountant (FCA) from Institute of
Chartered Accountants of Pakistan. He has over 15 years of experience in the fields of
finance, human resource development and general business management.
Mr. Murad Saigol
Mr. Murad Saigol is a graduate from School of Oriental and African Studies, London,
UK. He is responsible for all the affairs of Appliances Division.
9
Director Operation
s
Mr. Homaeer Waheed
Mr. Homaeer Waheed is General Manager Manufacturing of the Appliances Division.
He is responsible for procurement planning, development and manufacturing of
domestic appliances in Lahore. He joined PEL in 1984 as an engineer. Mr. Waheed
holds Bachelors in Mechanical Engineering as well as Masters in Administrative
Sciences. He is a member of the Board of Directors of PEL.
Syed Manzar Hassan
Syed Manzar Hassan is General Manager Finance. He joined PEL in 1998 and is
responsible for financial matters including budgeting and financial planning. Mr.
Hassan is a Chartered Accountant (FCA) from the Institute of Chartered Accountant
of Pakistan.
12
Mr. Yousuf H. Ishaque
Mr. Ishaque is working as General Manager Marketing of the Appliances Division.
He is responsible for the development, implementation and monitoring of marketing
and sales plans, for the appliances business. He is also responsible for corporate
planning and strategic management at PEL. Prior to joining PEL in 1993 he was
associated with ICI Pakistan Limited for over five years. Mr. Yousuf graduated from
Government College, Lahore in 1980.
Mr. Mohammad Raza Khan
Mr. Mohammad Raza Khan is General Manager Manufacturing of Power Division of
PEL and is responsible for Planning, Development and manufacturing of power
10
distribution equipment, which include transformers, energy meters (1 phase & 3
phase) and Switchgears. He joined PEL in 1982 and holds Bachelors in Science
(Mechanical Engineering) from University of Engineering & Technology, Lahore.
SPAN OF CONTROL
The organizational hierarchy of Pak Elektron Ltd. has both flat and tall span of
administration. In case of lower level of hierarchy (the worker and their supervisors)
the span is wide but as the level goes up, it becomes tall.
The managing director who is answerable to the Chairman holds the top
position. General Managers are answerable to the Managing Director (MD) and are
responsible for respective division, Managers are heading some departments, and
Assistant Managers (AM) is leading some by Deputy Managers (DM) and other.
There are senior engineers who are section in charge Supervisors and foremen report
to them.
Executive level
At executive level, three to five engineers report to a manager and almost
some numbers of managers’ report to a General Manager.
Workers level
At workers level, usually 10 to 30 workers report to a foreman. Three to seven
foremen report to a section in charge.
11
DIVISION OF LABOUR
In Pak Elektron Limited (PEL), two types of employees hired
1. Permanent Workers
2. Temporary Workers
Temporary workers are employed for about 6 months, and when the season
concludes the temporary workers are laid off. Temporary workers are employed as
helpers and assigned those jobs where skills are not required.
Workers are divided into different teams based upon their skills and nature of
job. The team is lead by head worker who is responsible for the work assigned to his
team and directs the fellow workers to perform the assigned task. These teams are
masters of their jobs. With in a team, tasks have been assigned in a sequential order
and every individual is assigned a specific task. This activity not only helps
productivity but also helps the quality standards of the workers as each of them tries
to keep an eye on the other to see that he is performing correctly because if any thing
goes wrong, the blame goes to the whole group.
Number of workers varies in different teams depending upon the nature of
jobs.
Departmentalization
As PEL has a complex organization departmentalization made on all basis.
Divisions are made on product basis and departments and sub-departments are formed
on activity grounds. In sales department regional sales offices exist to look after the
12
business on geographical basis. Finance and personnel administration departments are
divided to look after the two divisions separately.
PEL is basically divided into two divisions. This division is based on product.
Power Division
PEL’s Power Division manufactures Transformers, Switch Gears, Electric
Motors, Energy Meters, Compact Stations, Shunt, and Capacitors etc. of highest
quality and of latest international standards. PEL is one of the major electrical
equipment suppliers to Water And Power Development Authority (WAPDA) and
Karachi Electrical Supply Corporation (KESC), which are the largest power
companies in Pakistan.
Transformers
PEL’s first major power product being produced since 1956 is Distribution
Transformers upto 33KV and 5000KVA capacity. These oil-immersed transformers
are suitable for both indoor and outdoor installations, being manufactured as per IEC
76, BSS 171 or VDE 0532 standards. Sealed tank designs are available upto 200KVA
while all larger size are conservator type. PEL Transformers have been tested in
KEMA labs Holland, against short circuit withstand in addition to Routine Type and
Impulse Tests in Pakistan.
Besides the standard 11/0.415 KV transformers, PEL also manufactures. 33/11
KV transformers upto 45000 KVA, pad mounted transformers and Silicon Oil
Transformer etc.
13
Switch Gears
PEL’s second major power product is High Tension and Low Tension
switchgears being produced for indoor and outdoor installations complying with the
latest international specification i.e. IEC, BSS or VDE, PEL’s switchboards are sheet
fabricated totally enclosed, floor mounting vermin and dust proof. These are supplied
with factory fitted relevant components and copper bus bars internal wiring, terminal
blocks etc. in preprinted form. Out switch gear manufacturing line consists of High
Tension Indoor or Outdoor type switch gear, metal clad, draw out type with vertical or
horizontal isolation can be supplied upto 33 KV voltage during rating and short circuit
level of 750 MVA as per customers requirements. These panels can be supplied
complete with triple-pole, minimum oil/bulk oil /SF6 Air Magnetic / Vacuum Circuit
Breakers, Current and Potential Transformers, meters protection relays and other
standard accessories PEL’s 11KV switchgears have been tested for short circuit
withstand if the KEMA International Laboratory.
Energy Meters
PEL’s third power product is the high tech, high quality single-phase
wattcmeters being produced under license from ABB (Asea Brown Boveri Power
T&D Company) of USA. In the range 10-40 amps and rated 240 volts. It is also being
planned to expand in other metering areas in near future. The plant with an annual
production capacity of 5,60,000 meters became the first unit of its kind in 1997, to be
awarded ISO-9002 certification, in Pakistan.
14
Special products like 11KV and 33KV Auto Re-closers and 11KV shunt
capacitor banks were also supplied to WAPDA under IDA and USAID International
contracts through open international competition.
Appliance Division
The Appliances Division was established in 1980–81 when company
introduced its first consumer product i.e. Window room Air conditioner in Pakistan.
Refrigerators and Deep Freezers followed this in the year 1986-87, Fractional Horse
Power Compressors in 1993 and carrier window and split air conditioners in 1997 and
Samsung window and split air conditioners in 2001.
PRODUCT PORTFOLIO
Window type air conditioners “PEL”.
PEL Split Air Conditioners
Refrigerators (Direct Cool)
Floor Standing Air Conditioner
Microwave Ovens
Washing Machines
Diesel Generator
15
Water Dispenser
16
Gross Sale
During the past three years, PEL has grown from strength to strength and has
established its name as one of the leading brand in the Home Appliances industry as is
evident from its Financial and Market results given below:
Market Share
FUNCTIONS OF SPECIALIZED DEPARTMENTS
Marketing
Marketing department is main nerve of any organization as far as PEL is
concerned; PEL has two different marketing departments i.e. separate for the two
divisions:
1. Appliance Division.
2. Power Division.
1. Appliance Division
17
The products marketed and managed in Appliance Division are as follows:
Refrigerators
Microwave ovens
Split and window Air Conditioners
Washing Machine
Water Dispenser
The primary duty of marketing department is to make an overall marketing
plan for each product and also analyze the current market situations by monitoring the
competitors separately and constructing strategies accordingly.
It includes the development of daily sales report region wise, location wise
and to compare it with the annual sales plan and in case of fluctuation take corrective
actions and make necessary arrangements. Allocation of advertising budget for the
whole year and to develop promotional plans for retailers, wholesalers, and end
consumers within limited financial budget.
Beside these activities this department is also responsible for check and
balance of dealers. This department not only motivates the dealers but also check their
activities. It also checks their credit limit because dealers have awarded different
credit limits according to their potential of sales. Whenever any dealer’s credit crosses
its limits they stop the supply and first they try to motivate dealer to clear his credit
then they restart his supply. These all things happed because much of PEL’s sale is on
credit.
18
Hierarchy of Marketing (AD)
Transshipment
Transportation is an important logistic decision, which PEL has to make while
transporting goods from factories to warehouse and then to dealers. For refrigerators,
the best mode of transportation is truck within cities and between cities. The main
reasons for using trucks are speed of transportation and economy.
The goods are transported from the factories at Hatter and Gadoon Amazai to
warehouses in Lahore and Karachi. To facilitate the transportation system the country
is divided into two zones. The appliances for Punjab and N.W.F.P. are stored in the
warehouse of Lahore while appliances for Sindh and Baluchistan are stored in
Karachi. The country distribution is as follows.
19
Zones Area Included
Northern Zone Punjab and N.W.F.P.
Southern Zone Sindh and Baluchistan.
The distribution of zones is as follows:
Region Area Included
Karachi Region All Southern zones including
Sindh and Baluchistan.
Multan Region RaheemYaar khan to Okara.
Gujranwala Region Jehlum and Kharian.
Rawalpindi Region Jehlum towards all NWFP.
Faisalabad Region Sargodha, Mianwali, Layya.
Lahore Region Sheikhupura,Lahore to Okara
onwards.
PEL makes annual contracts with different transportation companies. The
products are insured so that any damage during the traveling is borne by the insurance
company. The annual contracts are more economical then renting trucks when
required. As dealers usually take PEL appliances on credit so they have to bear the
transportation cost but if the sales are on cash, as in case of some institutions that
contact PEL directly, the transportation cost is borne by PEL.
To deal with the dealers network through out Pakistan, PEL has employed a
large sales force. This sales force is a link between dealers and PEL.
20
Dealers
There are about 1500 dealers dealing in PEL appliance. The Company has to
look many different aspects of a dealer before deciding to give him the dealer ship.
The different criteria, which a dealer has to fulfill, are:
The dealer must have a good reputation in the market in which he is operating.
Those dealers are preferred who do business on cash basis with the company.
Even if they take credit they must be financially strong enough to make the
payment within one month.
The dealer who gives a prominent shelf space to PEL appliance without much
persuasion or do not demand a high price for shelf place are preferred.
Location of dealer's shops is another important factor. The place should be
reachable by customers and easily accessible by them such as Abid Market
Lahore.
The dealers must promote PEL appliances through point of purchase
promotional material provided by PEL at their shops. These materials should
be displayed at prominent places.
At one hand if PEL demand such services from their dealers, they are offered
many incentives for their services too. PEL has offered many sales promotion
schemes to the dealers, which will be discussed in promotion section.
Placement of Order by Dealer
Every month each dealer is visited by the sales officer appointed in that area.
That sales officer has all the past record of that dealer regarding the quantity ordered
21
by that dealer, payment made, payment to be made etc. The sales officer then checks
the number of appliances that are still unsold and are at dealer's shop or store. If there
is a need for an order to be placed the dealer fills a form which describes in detail
which appliance is required by the dealer in what quantity, which color and model etc.
The form is stamped by the sales officer and is sent to accounts department where the
invoice of the order is made. The quantity ordered along with the invoice is sent to the
respective dealer within twenty days.
Marketing department is a blend of following departments:
Customer Service Department
Credit Control Department
Dispatch
Customer Service Department (CSD)
CSD is a customer service department under the Marketing Head. Where the
after sale service is provided to satisfy customers having problem in their appliances.
PEL is well known for their customer care service.
Credit Control Department (D&C)
D&C is a credit control department under the Marketing Head. A
responsibility of this department is to maintain record for all the credit transactions.
Dispatch
Dispatch is another department under the Marketing Head. In this department
all the things are maintained which are send out of the factory or to dealers.
22
Consumer Marketing Department (CMD)
Consumer Marketing Department is the department in which I have been
appointed as intern for the duration of 7 weeks (March 07,2005 to April 23,2005).
This department is basically under the marketing department. At the start this
department did not exist in the hierarchy but with the passage of time and with the
success of easy installment scheme, this department came into being. The reason is
that in the start this department’s target market was Lahore and its workforce had only
8 persons and now after 2 years of its establishment it has covers major cities of
Pakistan and it has workforce of 45 and they are recruiting more to cover these areas
fully.
There are many regional offices in major cities for example in Multan,
Sahiwal, Karachi, Hyderabad, Faisalabad, Gujranwala, Hattar, Rawalpindi, Sialkot,
Bahawalpur, Sukker, Sargodha and AJK (Azad Jammu Kashmir) and the head-office
is in the factory that is Consumer Marketing Department.
This scheme is well received so its now on expansion. This scheme is only in
big cities. The target market of this scheme is Government employees or the
employees of those companies, which have signed Memorandum of Understanding
(MOU) with the bank who is financing. Why so? It is because those Govt. offices
make sure to the bank that their employee’s salary will go to their hands after the
deduction of installment of the bank and MOU also make sure that employees who
got financing will get salary after deduction of bank’s installment. Askari Bank
Limited is financing the PEL employees and Soneri Bank and Bank of Punjab to the
others employees of Govt. or company which has been signed MOU with the bank.
23
Human Resource Department
Human Resource Department is the most important and key department of
every organization. It not only deals with the employees of the organization but also
help in management of the affairs of the company.
PEL has a full fledge HR Department known as HR&A or administration
department with the staff strength of 38 employees. The GM is the top executive in
the HR department and there is one manager of HR to facilitate the work of G.M. and
2 personnel and an admin officer.
HR Department’s activities are spread over the whole organization. The
following areas come under direct supervision of HR department at PEL.
Hiring and right sizing of employees
Training and development
Compensation system
Security and fire fighting
Gate supervision
Telephone exchange
Fair price shops
Canteen supervision
Dispensary and health care
As the security in the company like PEL is very much important so there is
24-hour arrangement of security by three shifts in charges headed by a security
officer. He is also responsible for the fire fighting activities and for the placement and
checking of all the fire fighting equipments. For the purpose of security and for the
24
visitors there are two gates under the supervision of a supervisors with two gate
assistants who are responsible for all the in and out transport and movement activities
in the organization.
There is a telephone exchange in the organization having a facility of 13 lines.
The organization is providing the basic necessities to the workers e.g. flour, ghee,
sugar etc. from the fair price shop at very controlled price and quality. Because this is
part of fringe benefits that are provided to the employees. There is a fair price
supervisor who is responsible for the purchase and distribution.
PEL is also providing the facility of mess to the workers and as well as officer.
Mess is provided at very nominal charges. Mess supervisor is responsible for the
purchases and cooking.
There is not a particular hospital in PEL but there is a dispensary with two
dispensers and one senior dispenser. For the medical check ups and for any detailed
curves the employees are sent to social security hospital
Finance Department
Finance Management is the lifeblood of any industry. If this area of
corporate activities is improperly handled, a company may lead insolvency
despite having all the resources and opportunities. Therefore proper financial
management is vital for every business concern and PEL is not lacking behind
over here.
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At PEL finance department for both division (Appliance and Power) is separate but
their procedure are same. To control both another departments called “Finance
Center” is established. Functions of finance are:
Perform as a workstation and as an integrated circuit amongst all department
of the company.
Arrange monetary resources / funds at favorable prices and at proper time.
Allocate resources / funds throughout the organization.
Deal with banks, investment firms, modarabas, government departments of
Appliance and power division calculate and keep employees salaries record.
Carry out final auditing of financial records prepared by Accounts department
of Appliances and power division.
Income Tax /Sales Tex Recording
The Finance Center prepares and keeps up to date record of income tax &
Sales Tax deductible at source on the payments made to its buyers i.e. WAPDA and
others, income tax/sales tax deductible on the salaries / wages or on sales of its
employees/dealers and tax payable to the government on the company’s profit.
Employees Salary Recording
Controlled by Account Officer, this section is responsible for keeping three
types of employee’s salaries record. These records pertain to workers, staff and
officers / managers.
When a person joints the organization he needs to submit a joining report to
HR&A for verification. Only those employees are eligible for salaries that have salary
authorization and appointment letter issued by HR&A department. Every month HR
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and A department send an absentees report to salary controller of Finance Center.
This list contains names of those employees who were on unauthorized leave. The
salary controller deducts required amount of money for unauthorized leave. No salary
is deducted if casual / sick / earned leave is properly applied for.
The monthly salary record of each employee is entered in the permanent
master file of computer. Necessary changes are made if any increment is observed in
the employee’s salary.
Administration (IR & A)
Key responsibilities are:
Maintenance of Attendance
Maintenance of Stores
Check the material in & out from the factory
Maintenance of factory
Provide assistance to all departments regarding material
Procurement
PEL has state of the art methods of production and they also outsource the
products and raw material not only from Pakistan but also from Asia, America,
Europe, and Africa.
So for this purpose PEL has two different departments for procurement, which are:
Local Procurement
Foreign Procurement
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Local Procurement
Local Procurement department is responsible for all the raw materials that are
required for making various products in the factory. It includes from nails to large
metal sheets. At the start of each financial year they receive a major plan from the
management, which highlights all the raw material required for each product. Dates
and maximum time limit for raw material requirement is also mention in this major
plan.
Now procurement team makes small benchmarks and milestones from the
major raw material required plan in order to ease them for remembering the required
time limit and also reminds finance department to arrange finance for such purchases.
Foreign Procurement
Responsibilities and duties are same as Local procurement but they vary in the
dimension that, they have to arrange the raw material from abroad. They also receive
same plan as local procurement for the whole financial year and develop milestones to
carry out the plan execution properly.
The skill of this department is to purchase the raw material in the optimum
cost that best satisfy the need of production department and also to finance
department in quality as well as in monetary terms respectively.
Internal Audit
The internal audit department is made to keep record and track of each
department.
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The main responsibilities of this Dept are as follows:
How things are working in each department?
Avoiding of illegal use of company resources.
Creating a check and balance procedures for each department.
Keeping track for misuse of responsibilities.
Indicating unnecessary usage of Budget allocation.
Information Technology Department
IT department’s key responsibilities are as follows:
Troubleshooting and problems facing in computers.
Installing and deletion of software’s.
Right protection and issuance.
Developed and maintain internal network.
Developed and maintain domain of each person.
Create and enhance internal software’s running currently.
Hardware and all software issues.
Production
Production department’s key responsibility is to develop and create products
that are required for the specific department. They also receive a major plan for the
whole financial year that indicates the number and models of each brand and the
deadline time for each lot. PEL’s production department is comprised of different
units according to the products. Following are the names of production department:
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Refrigerators Production Department.
Transformers And Switchgears Production Department
Electricity Meters Production Department.
Accounts Department
The Accounts Department looks after the financial matters. Accounts
department for both power and appliances division have similar functions as below.
Functions
This particular department has the responsibility to prepare and keep an upto
date record of following:
Financial keep of daily, including the income statement and balance sheet.
Book keeping of daily monetary transactions.
Production maintenance reports
Cost data on labor, materials and overheads.
Remittances and loans
Expense reimbursement
Tax statement
Financial deals with the banks, leasing companies, modaraba companies,
DFIs and other government agencies through Finance Center.
The finance department maintains record of all its expenses through vouchers.
Generally the following types of vouchers are used for this purpose.
Cash payment vouchers for cash transactions recording.
Purchase vouchers
Bank payment vouchers
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Journal vouchers for general expenses.
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SWOT Analysis
The strengths, weaknesses, opportunities and threats of PEL are discussed below:
Strengths
PEL has the following strengths and is in more competitive position in these
areas than its competitors. Following are the main strong points of PEL:
Strong brand image
Strong dealer network
Strong quality, sale and service
Market leader in WRAC
Number 2 in refrigerators in Pakistan
Strong grip in home appliances
Strong Management
Distribution of Authority
Strong research and development department
Free customer service
Strong Brand Image
PEL has created the strong brand image in the mind of the customers through
higher quality and low price. The customers of the PEL always prefer to buy the PEL
home appliances like WRAC split AC and refrigerators whenever they wanted to buy.
PEL is a popular company in Pakistan and every one knows about the PEL products
and its brand. That’s why PEL selling of WRAC are very high in the market than the
competitors selling.
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Strong Dealer Network
It is also the plus point for the PEL that it has also developed the strong dealer
network in the market. The dealers are always trying to sell the PEL appliance to the
customers because they know there are high margin in the PEL products. They can
get more money after selling the PEL products. The management of PEL also
provides more incentives to their dealers than their competitors. Dealers are very
conscious about the PEL products and always guide the customer in buying the PEL
appliances and tell them the more qualities of PEL products than others products.
Strong Quality, Sale and Service
PEL is also in a strong position that it provides the superior quality to your
customers. It makes sense in the mind of the customers that PEL products are better in
quality than the other companies’ products. PEL also provides the after sale service to
their customers which delight the customers satisfaction. It is another way to advertise
the products because when customer is highly satisfied then he tells the other ten
persons that they should buy the PEL products. It is the free publicity of PEL products
that PEL Company gains.
Market leader in WRAC (Window Room Air Conditioner)
It is another strong point that PEL is a market leader in WRAC. The window
room air conditioner is more demanded by the customers than its competitor’s air
conditioners because it has more durability in operating systems and cools the room in
few minutes. PEL always strives to provide the innovative features in WRAC. PEL
air conditioner is cheaper and has a higher quality than others WRAC. That’s why
customers always purchase the PEL window air conditioner.
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Number 2 in Refrigerators in Pakistan
After the Dawlance refrigerators PEL has a second position in refrigerators
market. PEL always continuously strives to pursue the strategies adopted by the
competitors. As a consequence the price war starts among the companies so each
company reduce the prices and try to increase the sales of its refrigerators. PEL is also
making efforts for the quality improvements than its competitor Dawlance.
Strong Grip in Home Appliance
So PEL is one of the companies, which is having a strong grip in the home
appliance i.e. WRAC, Refrigerators, micro way Owen etc that is a strong point for the
company. PEL is penetrating the market by introducing the new home appliance like
Split Air conditioner and always trying to get the maximum shares in the home
appliance market.
Strong Management
It is another plus point that PEL has a strong management. Its employees are
more competent and fully skill and knowledge. They always cooperate the top
management in achieving the goals that are assigned to them. Employees are well
aware about the company objectives and so they are committed to the development of
company.
Distribution of Authority
Top management of PEL delegates the power to the subordinates for
achieving the marketing objectives in a specified time period. So every manager has
an authority that use in achieving the Goals. He can easily handle the complaints of
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customers and try to satisfy them. So it is a strong point for the PEL because there is
decentralization of powers.
Strong Research and Development Department
PEL has a strong research and development department that is continuously
trying to develop new features for the products. R&D department spends huge amount
of money for the development of product. R&D makes research for introducing the
new product and asks the customers what they want extra in our products. For this
purpose they hire the highly qualified employees in R&D department. That is another
strong position of PEL.
Free Customer Service
PEL provides free customer service for one year to its customers. So the
customers always buy the PEL products due to its free service and it becomes loyal
customer for the PEL. PEL always provides help to their customers for repairing the
WRAC, Refrigerators and other items. PEL always make efforts to satisfy the
customers.
Public Limited Company
Although PEL is owned by the SAIGOL GROUP but its shares can be
purchased and sold in stock exchange market. So every one who is interested in
purchasing the shares of PEL he can purchase. It is also called public limited
company. So people are more interested in buying the PEL products.
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Weaknesses
Like other companies PEL has some weaknesses in operating the business. If
PEL overcome on these weaknesses then it can become a market leader in the home
appliance. PEL loose some competitive edge in the following points:
Lack of advertisement
System variations
Lack of Product range
Less Utilization of capacity
Financial Problems
Lack of Advertisement
It is a second major weakness of PEL that it never makes advertising on TV.
That creates hurdle in selling the products and customers cannot know the changes,
which are made in products by the company time to time. Company is not in a
position that it made advertising of all their products on a wide range because of its
high cash requirement towards the production side. Due to this problem company
always make efforts to develop strong relationships with dealers.
System Variations
It is also the main weakness of PEL that there are rapidly a change in polices
of selling the products. That’s creates problems for the selling team how to sell the
products to the dealers because the top management requires the urgent amount of
money. So selling team sells the products sometimes on hard cash that will reduce the
prices of products that gives the benefits to the dealers and creates problems for the
management.
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Lack of Product Range
PEL has introduced more products of consumer items but there are more needs
to develop new consumer items like PEL washing Machines, Vacuum cleaner and
other items. Due to lack of product Range, Company cannot earn more profit because
consumers have high demand of these products and they say that if company is
investing in these products then we can keep all PEL items and we never need to keep
other’s company products.
Less Utilization of Capacity
Due to lack of finance a company cannot utilize all its resources on its full
capacity. It increases the cost of products per unit that decreases the profit margin of
each consumer item. Sometimes company cannot allocate the resources according to
the requirements of production department that’s becomes the problem for the
complete utilization of resources. For the company it is also the main point of
weakness.
Financial Problems
Sometimes PEL faces the financial problems because its stocks are so much
piled up in the stores that create the problem of cash flow because when the stocks are
not sold and the production is in process for 24 hours a day than the company faces
such problems. So company aggressively research the sources of cash and stress the
dealers to sell the PEL’s products to the end consumers. Company sometimes sells
their products on advance bases to the dealers and gives them high margin of profit.
That’s why a company is facing the financial problems and company never pays
attention on the alternative resources that will help in reducing the stocks. That is a
customer demand and due to this it is the main weakness of company.
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Opportunities
For the PEL there are more opportunities for expansion the business. If PEL
realize that opportunities then it will be more fruitful and profitable for the company.
Even if company does not take advantage of these opportunities then it will loose its
competitive position and high profit. Its competitors will give PEL tough time to
pursuing the opportunities that are adopted by them. Following are the opportunities
for the PEL.
Exploration of market in Pakistan
Increase in product range
Export opportunity
Increase in production capacity
Exploration of Market in Pakistan
PEL has the opportunity to explore the market in all over the Pakistan. Even
though PEL introduce its products in all cities of Pakistan but there are so many
places that have the capacity to absorb the PEL’s products. These places are tribal
areas in NWFP and northern areas of Punjab and NWFP, central area of SIND. If
company introduces their products in these areas then it can get a large amount of
profit and increase its market shares.
Increase in Product Range
It is the main opportunity for the PEL that it can increase its product range that
will be a more profitable for the company. There are more needs to develop new
consumer items like PEL washing Machines, Vacuum cleaner and other items. Due to
lack of product Range, Company cannot earn more profit because consumers have
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high demand of these products. If PEL does not take this opportunity then it will loose
high margin of profit and market share. It will reduce the fixed cost and increase the
efficiency of the employees.
Export Opportunity
PEL Company has also the opportunity to export their products in other
international countries like UAE, SAUDI ARABIA, and other Arabic and African
countries. It will not only reduce the dependence on one market but also increase the
market shares and profits. It will also help the company to spread the fixed cost on all
of its production that will reduce the total cost and company will enjoy the high profit.
Increase in Production Line
Company can also increase its production line at the maximum level that will
increase the efficiency of the employees and also will reduce the total cost.
Sometimes company cannot allocate the resources according to the requirements of
production department that’s becomes the problem for the complete utilization of
resources. Company should look the market conditions then it will produce their
products.
Threats
PEL Company in such a competitive era has many threats as well. These
threats are for the present situations and future. Company should make its policies and
strategies according to these threats. So following are the main threats for the PEL:
Strong competition
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China’s product introduction in the market
Price war
Slow growth rate in Pakistan
Instability of government
Tax department
World Trade Organization
Investors
Strong Competition
There is very strong competition for the home appliance in the market. So every
company tries to come in the number 1 position for achieving the maximum shares in
the market. Every company adopts different strategies for selling of the products. It
reduces the profit margin of each company and increase the bargaining power of the
buyers who will demand higher quality of products and lower cost. That is the main
threat for the PEL Company.
China’s Product
China’s products are another threat for the Pakistani companies because these
products are cheaper than the Pakistani products. An even china product not well in
quality but it is comparatively in low prices than the consumer’s home appliance that
are manufactured by the indigenous company. China products stress the indigenous
companies to lower the quality and prices that will not be profitable in the long run.
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Price war:
As there is stiff competition in the home appliance market that will cause the price
war. So every company reduces the prices of its products to increase the sales. It will
not only reduce the profit margin of the company but also reduce the quality of
products. So price war is the main threats for all the companies, which are operating
in these products.
Slow Growth Rate in Pakistan
There is also slow growth rate of home appliance in Pakistan that will increase the
stocks of the company. It becomes the burden for the company that how to sell these
stocks. Its main reason is that purchasing power of the buyer is very low and it has no
income to buy the expensive the home appliance. It is also becoming a main threat for
all the companies.
Instability of Government
The rapid changes in governments will become threats for the companies because
every government adopts its own policies for the industries. So it increases the
uncertainty for the investors who want to invest heavy amount in their new projects.
That’s become the major threat for the companies and decreases the profitability. Due
to fear of politically instability companies will also not invest the heavy amounts.
Tax Department
Tax department is another major threats for the companies that will restrain the
business expansion. There is more complicated tax procedure for the companies,
which are interested to increase the investment in their businesses. A tax department
also asks the company from where it receives the money and where this money will
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spend. Due to fear of heavy taxes companies would not like to invest the heavy
amount.
World trade Organization
World trade organization will give the permission in 2005 to each company of home
appliance to export their products after paying less duties or duty free products. That
will increase the pressures for the indigenous companies to reduce the prices and
increase the quality. It will increase the competition among the foreign companies and
indigenous companies. But our companies also run under uncertainty conditions. This
will decrease the morale of indigenous companies.
Investor’s:
There are few people who have big investments and they are importing the Chinese
product by their own Brand name. This is a very big threat for the company and
company is trying to create some attraction for the investors to demotivate the
investors.
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Problems
Main problem we have found in this company is they have the communication
barriers among the departments. If PEL is a team departments are its players, they
need to work as one unit rather than seem working in their own capacity.
Sub Problems
Lack of advertisement: PEL does not focus on advertising while its competitors are
focusing on this part.
Lack of co-ordination: There is lack of co-ordination between the departments.
Every department has concern with its own matters not with the whole company.
Lack of Product Range: Competitors are offering the products at a wide range in
term of different sizes and colours while PEL has limited offerings in terms of
different sizes and colours.
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CHAPTER III
Internship Activities
I have performed these duties during my internship program (October 03 to
November 30, 2007). All doings and activities are check by my supervisor, Mr.
Ibad Jamal (Marketing Manager) and his team members Mr. Muhammad Ali
(Brand Manager), Mr. Sohaib Irfan (Marketing Executive) and Mr. Tanveer
Ahmed (Marketing Officer) whom I report to.
Making a report of sales and collection on daily basis and then presenting
it to our marketing manager.
My knowledge of Marketing and Advertising helped me while I arranged
the documents in date order, I learnt a lot during this activity that how
much important it is to arrange the things in proper manner. During
activity whatever I asked from Mr. Muhammad Ali (Brand Manager) he
was so kind to guide me in detail, like ATL and BTL concepts.
Sending advertising material (posters, stickers, wobblers, buntings,
banners etc) and letters or notification to all area sale offices of PEL in
Pakistan as per instruction of Mr. Ibad Jamal
Follow up in order to make sure that sales offices have received the dealer
certificate stands and querying any discrepancy they faced.
Randomly calling existing customers in different areas of Pakistan and
asking them if they were satisfied with the product they purchased, and
then make a customer satisfaction report.
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Preparation of monthly report Sales Plan vs. Actual Production
Making list of price comparisons of different brands to PEL.
Visit to Lahore sales office in order to get the information regarding PEL
competitors.
Preparing the presentations of competitors and world renown brands in
order to make easy to compare and know the strength and weaknesses of
PEL home appliances.
Working with my manager in PEL
During my 8-week internship, I was associated with Mr. Ibad Jamal, who is the
marketing manager of PEL and his team Mr. Muhammad Ali (Marketing
Manager), Mr. Sohaib Irfan (Marketing Executive), Mr. Tanveer Ahmed
(Marketing Officer), Mr. Faisal Tanveer (Data Analyst) and Mr. Afraz Ahmed
(Media Coordinator). Mr. Ibad Jamal has a very pleasant personality and I found
no fear in his team which make their efficiency up to mark. I never faced any
major conflict or was under stress while working under his management. Mr.
Muhammad Ali (Brand Manager) has never created stress while taking work for
me, but did say a few words when he was not happy or when the work done was
not up to his standards, and when he appreciated my work he always gave a pat on
my back saying ‘good’ by showing his thumb impression. Overall its not easy for
me to name the whole team over and over again but all of Mr. Ibad Jamal’s team
made my vision broader. Thanks to them, for making me learn from the activities
and from the environment.
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Application of knowledge learned in MBE
While working in PEL, I applied my knowledge learned in MBE in the following
ways:
In my MBE studies, we learned how important the SWOT analysis is, in
PEL I learnt its application.
My knowledge of MS OFFICE came in handy while working here in PEL,
as daily reports were made in excel and power point for presentations.
My knowledge of Marketing and Advertising helped me while working
with Mr. Muhammad Ali (Brand Manager) whatever I asked from he was
so kind to guide me in detail. So, my urge for learning in field of
Marketing and Advertising helped me a lot.
We learnt in Business Communication how to interact with our
clients/peer groups/customers with good communication skills, which
came in handy, here in PEL.
Operating a computer and using its application did most of the work,
which were well taught in MBE.
I realize the importance of research work for any organization by seeing its
application.
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New Things Learned:
Some new things, which I learned here, were:
How to work individually as well as in groups under relaxed and stressful
environment.
Patience is very important in dealings, as anger can lose your customer.
To increase your sales and stay in competition with top brands it is
necessary to keep your dealers happy by giving them incentives.
How to coordinate with the other sales areas of PEL via telephone/fax..
How to deal with your customer’s complaints in such a way to satisfy
them.
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CHAPTER IV
SUMMARY
I have worked as an internee in PEL (Pak Elektron Limited) for the duration of 8
weeks (October 03, 2007 to November 30, 2007).
PEL (Pak Elektron Limited) is the flag bearer of the Saigol Group of Companies. Pak
Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It
was established in 1956 in technical collaboration with M/s AEG of Germany. In
October 1978, the Saigol Group of Companies bought the company. Since its
inception, the company has always been contributing towards the advancement and
development of the engineering sector in Pakistan by introducing a range of quality
home use products.
PEL has two divisions of its business.
1. Home Appliances Division
2. Power Division
Home Appliance Division includes the products like WRAC (Window Room Air
Conditioner), Split Air Conditioner, Refrigerator, Fridge, Television, Generator and
Microwave Oven. Power Division includes the products like Transformers,
Switchgear and Energy Meters.
I have been working in Marketing Department of Appliances Division. Marketing
department consist of D&C (dealer network &collection), DESPATCH, CSD
(customer service department), SALES MANAGER OF REFRIGERATOR AND
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TRADING MANAGER. Main function, which I had to perform daily was to prepare
sales and collection report on the basis of area secondary sales report of Lahore,
Karachi, Rawalpindi, Coordination with advertising agency, Coordination with
production department, Conducting the customer satisfaction survey for the
complaints and the new buyers, Preparation of monthly report Sales Plan vs. Actual
Production, Price comparisons, Monthly report of import data, Market visits for
market trends and information, Coordination with regions for regional advertising etc.
I have learnt many things through this internship program that is how an organization
works, how much important is paper documents are, how to deal with the customers
and how much important is being updated all the area sales offices with the head
office for any new notifications.
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Recommendations for the organization:
Co-ordination should be developed between departments to departments. This
can be done through setting goals and objectives of the whole company not
only for their different departments.
As I found brand name is very important factor in consumer buying behavior,
thus it is advised that PEL should work on the brand image. Although PEL has
a strong brand name, but it has to create much more stronger one, mainly
through advertising, to compete with Dawlance, Waves, and other
international brands.
The company should add more features to their products. People are attracted
towards a product with unique features and something that would make the
customers feel that they have got their moneys worth.
The company should take measures to improve the quality of their products by
improving the process. Thus the company is advised to take steps towards
improving the quality of its products, other wise it will lose a lot of potential
customers to their competitors.
To gain more competitive advantage over their competitors, PEL has to work
on their distribution network.
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PEL more focus should be on electronic media to get competitive advantage
over the competitors. They have to increase their advertising expenditures.
The company must give more incentives to the dealers so that they remain
loyal to the company and promote the products.
Introduction of seasonal schemes can help to boost sales.
The product line of PEL is not good as compared to others like Haier, Waves,
Super Asia, so it’s good for the company for more success if they work on it.
The company should change the advertising theme and slogan to attract and
for the attention of customers. They should show some creativity in all
promotional activities. So PEL should come with some catchy Slogan.
PEL should define the company’s mission and vision statement that can be
more helpful for them in future. Every organization however it is small or
large has clear direction where they want to go. Without direction or knowing
the purpose of their existence how an organization can make progress.
They should advertise throughout the year so people should remember them
and will be more brand loyal and new customers will be attracted. They should
use all the medium of advertising to be more successful in attracting
customers.
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For MBE
Our department is in desperate need of a computer lab, where students can
explore the web world.
The teachers of ‘Department of Business Education’ should not just deliver
lectures by relying on the textbooks there is always room for improvement in
life, they should personally first do some research on the topic, which is to be
taught, and then according to those new methods they should deliver their
lectures.
The teachers of MBE should not hurry to finish the course work, rather they
should concentrate on the quality of knowledge than the quantity of
knowledge transferred to the students.
Case studies should be encouraged in all major subjects in MBE
I came to know that students tend to work hard and are more encouraged to
study if the attitude of the teacher is soft and if the teacher is easy-going. This
way the teacher finishes his coursework in time with proper understanding of
the students, and the students are look forward to attend classes of that specific
teacher and are willing to participate in his lectures.
The teachers of MBE should practice the use of MS OFFICE to students.
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For the Institute (for the next internees)
I found PEL a great place for new internees of MBE, I strongly recommend
my juniors because in PEL you got the environment where they want to make
you learn. They don’t treat internee as burden
PEL should open its internship programs on frequent basis so more and more
students can get the chance to work as an internee in such a huge institute and
get their relevant work experience. They can personally go to
colleges/universities or give an ad in newspaper.
In future, the managers of PEL should assign duties on daily basis.
The work given to the internees should not be general, rather it should be
according to their specialized field (i.e marketing, finance, HR) so after the
completion of their internship program they have practical knowledge of that
specific field.
I recommend that PEL should minimize its timings for its internees i.e
9:00am-3:00am. A 6 hour shift is enough for a trainee rather than a 8 hour
work day.
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Conclusion
Concluding, I found that the people while purchasing for a certain item take great
interest in the brand name, quality, and features. A very fine example is that of
Dawlance. Most of the people that I had contacted gave a lot of preference to
Dawlance. People have a strong faith in this brand name, partly due to its high quality
and features and partly due to the brand image that it has created during all these
years. All the other factors like price, advertisement, word of mouth, dealers etc. don’t
have that much importance during the buying process. PEL is not targeting through
advertising, by coordinating their marketing efforts, take advantage of synergy among
various communication tools, and develop more efficient and effective marketing
communication programs.
Even a new technologies and formats create new ways for marketers to reach
consumers, they are affecting the more traditional media Television, Radio,
Magazines and Newspapers are becoming more fragmented and reading smaller and
more selective audience.
PEL is doing some advertising efforts but problem is that there is no creativity in ads.
No doubt PEL is making excellent products, but unfortunately PEL is not realize
creative advertising is also important part of their Marketing success.
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Annexure
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